News Briefs

Jul 29, 2019

✦ The Trump administration’s proposal to overhaul the prescription drug rebate system in government insurance plans — which it recently scrapped — may not be dead yet. Senate Finance Committee Chairman Chuck Grassley (R-Iowa) wants to include a version of the rule in the final version of his newly released drug pricing reform bill, CNBC reported. The rule would have removed safe-harbor protections under the federal anti-kickback statute for rebates paid by drug manufacturers to PBMs, Part D plans and Medicaid managed care organizations, and it would have created a new safe-harbor protection for point-of-sale drug discounts. But the administration pulled it amid concerns that it would raise Part D premiums. Grassley’s bill, which cleared the Senate Finance Committee on July 25, would also put inflation caps on Medicare Part D and Part B drug prices.

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